Sell Stops Push Comex Gold Lower In Overnight Trade

Tokyo (Apr 21)  Comex gold weakened in Asia-Pacific trade overnight as two rounds of sell stops were hit, says MKS (Switzerland) SA.  In early electronic trading, gold traded heavily, triggering stops to a low of $1,290.30, MKS says. “After briefly trading at these levels, a wave of buying in June gold alongside some solid demand out of Tokyo propelled gold all the way up to and above $1,300, trading as high as $1,301.50 before edging back down towards $1,299,” MKS says. “The market was quiet ahead of the Shanghai Gold Exchange fix, but once the Chinese market opened, a conglomerate of sell orders hit the exchange simultaneously, sending gold crashing lower. The metal found some slight support around the previous lows $1,290/91, but once $1,290 was given, a tirade of stops were triggered, smashing gold a further $8 lower before any kind of support was found.” Comex June gold traded as low as $1,281.80. As of 7:44 a.m. EDT, the contract was at $1,284.80, down $9.10 for the day. Much of Europe remains on holiday for a long Easter weekend, MKs notes.